Aveng news hits construction shares

Posted On Wednesday, 07 January 2004 02:00 Published by Commercial Property News
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South African construction shares are looking shaky

Carl Grim AvengSouth African construction shares were looking shaky on the third trading day of 2004 after Monday's warning by Aveng that its earnings for the six months to December would be between 10% and 30% lower than for the corresponding period last year sent shock waves through the sector.

"I think the warning took everyone by surprise. People expected Aveng to be hurt by the rand, but people are more concerned by the cut back in mining projects and slower infrastructural spending by government," a dealer said.

He continued that while the rand's strength would directly affect companies like Aveng and Murray & Roberts (MUR), which have projects outside South Africa, it was also having an indirect affect in that it was causing projects to be delayed.

Murray & Roberts is South Africa's largest construction company in terms of market capitalisation, while Aveng is the second largest.

At 2.39pm, Aveng shares were flat at R8.50, after losing 5.5% on Monday. Murray & Roberts extended Monday's 1.4% loss and was 2.84% or 38 cents in the red at R13. Small cap construction company Group Five dived 5.95% or 55 cents to R8.70 after losing 4.15% on Monday.

I-Net Bridge

Publisher: I-Net Bridge
Source: I-Net Bridge

Last modified on Friday, 21 June 2013 21:47

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